Tuesday, April 06, 2010

Government Efficiency

Mish:

In response to Seattle Trash Collectors Make Average of $109,553 But Want More; 1,600 Apply to Haul Trash if Teamsters Strike I received an Email from Michael about union monopolies in San Francisco.

Michael Writes ...

Here in San Francisco picking up a garbage costs about $37/can per week.

A contractor I know got fed up, canceled his service as did his neighbor. They simply loaded both houses garbage into his truck, took it to the dump and paid the $40 to get rid of it. He charged his friend $10.

As a contractor he had to go to the dump all the time anyway. Pretty soon he had a small business, neighbors paying him $10 instead of $37, a difference of over $1400 per year or the price of a vacation or plasma TV for the family.

He sorted their garbage and turned in the recycling for more money. Normally the neighbors had to keep two cans, sort their garbage themselves and the Garbage monopoly took all the recycling fees anyway.

Pretty soon he hired a couple of neighborhood kids and his crew of 3 did both sides of residential streets at the same time. If you had an old monitor or TV, motor oil, or paint to get rid of he'd take that too, sometimes he'd charge you $5 + what the dump charged for the special item. Need an extra pickup? No problem. He'd work from 5am to 8am and he was earning $200 per day and his workers $75.

The amazing thing he kept telling me was that the larger the truck you had the more money you could make. He was amazed that with only a modified large pickup truck he could make money at a third of what the Garbage company charged.

When the local garbage company and its union found out about "Joe" they complained to the city. Within a year a law was passed stating that garbage service was now mandatory for all residents at the price the city's monopoly charged, which was shortly raised. And Joe? For a while he still took our recyclables until he was fined $4000, even though he had our permission. It appears our household recyclables are owned by the Garbage company, not us, as it subsidizes our low cost of garbage service!

It is clear that monopolies are bad in business or unions and monopoly unions exist to enrich a class of privileged workers at the expense of ordinary workers.

Cheers, Michael

There's more at the link. $37 per can per week?!?

1 comment:

Matt said...

At one time there were 4 profitable street car companies in San Francisco. Then the city passed a law requireing they all be unionized and pay their workers the same rates. Today there is one gov't owned monopoly and it loses money.